Morguard North American Residential REIT Announces the Exercise in Full of the Over-Allotment Option Associated with its Recently Completed Public Offering of $75 Million of Convertible Debentures

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

MISSISSAUGA, ON, Feb. 16, 2018 /CNW/ - Morguard North American Residential Real Estate Investment Trust (the "REIT") (TSX: MRG.UN) announced today that the syndicate of underwriters, co-led by RBC Capital Markets and TD Securities, of its recently completed bought deal offering of $75 million aggregate principal amount of 4.50% convertible unsecured subordinated debentures due March 31, 2023 (the "Debentures") have exercised in full their over-allotment option to purchase an additional $10,500,000 aggregate principal amount of Debentures.

The REIT intends to use the net proceeds from the exercise of the over-allotment option to fund future acquisitions, for debt repayment and for general trust purposes.

The closing of the over-allotment option is expected to occur on February 21, 2018.

The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. Persons.

About Morguard North American Residential REIT

The REIT is an unincorporated, open-ended real estate investment trust which owns, through a limited partnership, interests in a portfolio of 16 Canadian residential apartment communities, located in Alberta and Ontario, and 30 U.S. residential apartment communities located in Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia, and Maryland consisting of approximately 13,000 residential suites.

Forward-Looking Information

Certain information in this press release may constitute forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the REIT's business results of operations. Forward-looking statements use the words "believe", "expect", "anticipate", "may", "should", "intend", "estimate" and other similar terms, which do not relate to historical matters. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the REIT operates; changes in business strategy or development/acquisition plans; environmental exposures; financing risk; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the REIT; and other factors referred to in the REIT's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The REIT does not assume the obligation to update or revise any forward looking statements.

SOURCE Morguard North American Residential Real Estate Investment Trust

K. Rai Sahi, Chief Executive Officer, [phone]; Robert D. Wright, Chief Financial Officer, [phone]

Related Links

www.morguard.com